UK Developers to get tax relief

The new national budget has given tax relief to the games industry after heavy lobbying from groups like TIGA.

The UK Chancellor, Alistair Darling, has unveiled a new national budget that provides further support and incentives for UK-based game developers, including new tax relief.

The announcement comes after fierce lobbying from a number of groups, mainly TIGA, the UK's trade association for the games industry.

The new budget will offer financial incentives to developers that fit certain cultural criteria based on their location, size and output. Profitable developers will be able to pay less tax on their profits, encouraging growth within the UK. Struggling developers will meanwhile get assistance to reduce losses and help keep them afloat, provided they fit the criteria.

The new system is basically very similar to the support that the UK film industry currently receives and has been well-met by TIGA representatives who lobbied for the change.

"Our research shows that games tax relief over a five year period should create or protect 3550 graduate level jobs, increase or safeguard £457 million in development expenditure and encourage developers to adopt new business models and create new intellectual property."

"Videogames are the Hollywood of the 21st century," added Wilson, who also points out that game development in the UK contributes £1 billion GBP to the UK's GDP.

"Our creative industries are a huge source of jobs, wealth and pride," said Chancellor Alistair Darling. "I will offer help to the computer games sector similar to the steps which are helping to restore the fortunes of the British film industry.

"This is a highly successful, growing industry, with half its sales coming from exports and we need to keep British talent in this country."

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12 Comments

I think that is a brilliant idea. Maybe more games company's will open departments/offices here to take advantage of less tax. Which in turn will create more game related jobs here. There are precious few..I've looked.

Originally Posted by FizzbanI think that is a brilliant idea. Maybe more games company's will open departments/offices here to take advantage of less tax. Which in turn will create more game related jobs here. There are precious few..I've looked.

From all the articles I read about the employees at developers working 16 hr days 6 days a week and then getting their bonuses and vacations taken away, I dont think I want that job, but thats probably just here in the US at EA and Activision.

Originally Posted by TomHAnd like the film industry, you'll end up with so many graduating with Games Study degrees that they'll have to work 'for experience' during their first 3-5 years post-graduation.

The sad part is that even if you're really passionate about it, there's going to be 10 more layabouts that just don't know what else they'd want to study... But like playing games.

It's just the same with film now, and it'll be the same with games in 10 years (if it isn't already.)

Still, this is a positive article, which shows that something good did come of the budget. Perhaps I shouldn't be so negative about it. :)

This is very true now. I'm going thru a bucketload of "experience" and internships and its not easy. The industry is very popular. But yes, be positive, it's about time this came about!

Like the UK film industry is such a success that the Government pulled the plug on it's 'assistance' a few years ago. I mean how many UK films are profitable for Christ's sake? How many UK based production studios have closed since film industry 'assistance' began?

No, this is a f**king joke for two reasons:
1. no matter how much financial support you provide, if the public doesn't want your product it's just an expensive (for the taxpayer) stay of execution. Look at the car industry's scrappage scheme.
2. There's a general election coming up so this could all turn out to be much ado about nothing.

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